India's palm oil imports declined in July following cancellations of import contracts, while soyoil shipments jumped to a three-year high, driven by competitive prices and the arrival of delayed June consignments, a leading trade body said.
Lower palm oil imports by India, the world's biggest buyer of vegetable oils, could lead to a stock buildup in top producers Indonesia and Malaysia and weigh on benchmark Malaysian palm oil futures.
India's palm oil imports in July fell 10.5% to 855,695 metric tons from June, the Solvent Extractors' Association of India (SEA) said on Thursday.
Imports of soyoil increased 36.9% to 492,336 tons, the highest level in three years, and sunflower oil imports fell 7.5% to 200,010 tons, the industry trade body said in a statement.
Higher imports of soyoil lifted India's total edible oil imports in July by 1.1% to 1.55 million tons from a month earlier, the highest level since November, the SEA said.
Palm oil imports fell in July because of the order cancellations, but they could rise in August as refiners are building stocks for the upcoming festival season, said a Mumbai-based trader.
In India, edible oil demand, particularly for palm oil, typically rises during the festival season due to increased consumption of sweets and fried foods.
A significant amount of soyoil is being diverted to substitute rapeseed oil, which is currently fetching a hefty premium over other edible oils, the dealer said.
India'soyoil imports are poised to surge 60% year-on-year to a record 5.5 million tons in 2024/25, six dealers told Reuters earlier this week.
The country buys palm oil mainly from Indonesia and Malaysia, while it imports soyoil and sunflower oil from Argentina, Brazil, Russia and Ukraine.
India's drive to produce more ethanol is leading its farmers to switch away from growing oilseeds, undermining government efforts in the world's largest buyer of cooking oils to reduce costly imports.
